President Trump Requests US$1.5 Billion Over 10 Years to Establish United States Uranium ReserveFebruary 12, 2020 7:30 am
AZARGA URANIUM CORP. (TSX: AZZ, OTCQB: AZZUF, FRA: P8AA) (“Azarga Uranium” or the “Company”) is pleased to announce that President Trump’s fiscal 2021 budget proposal has requested an annual allocation of US$150 million for a 10-year period, totaling US$1.5 billion, to establish a United States uranium reserve, noting that “establishing a uranium reserve provides assurance of availability of uranium in the event of a market disruption and supports strategic U.S. fuel cycle capabilities.”
Blake Steele, President and CEO stated, “We commend the President’s recognition of the importance of the United States nuclear fuel cycle and specifically the uranium sector. President Trump’s proposed fiscal 2021 budget requests US$1.36 billion for the office of nuclear energy, which includes US$150 million (US$1.5 billion for 2021 to 2030) to establish a strategic United States uranium reserve. The budget proposal from President Trump confirms the administration’s commitment to reviving the United States nuclear fuel cycle, of which uranium mining is a critical component.”
Steele further noted, “Our flagship asset, the advanced stage Dewey Burdock In-Situ Recovery Uranium Project in South Dakota, USA (the “Dewey Burdock Project”), is one of the preeminent undeveloped uranium projects in the United States. A robust Preliminary Economic Assessment was recently filed for the Dewey Burdock Project, which estimated direct cash costs of US$10.46 per pound of production and low initial capital expenditures of US$31.7 million. This, coupled with the positive Atomic Safety and Licensing Board decision on the Nuclear Regulatory Commission license and the Environmental Protection Agency permit advancements in 2019, continues to de-risk the Dewey Burdock Project and pave the way towards construction. The Company anticipates being well positioned to realize the benefits of the administration’s support of the United States nuclear industry.”
On 15 July 2019, the Company announced that President Trump had established the United States Nuclear Fuel Working Group (the “NFWG”) to develop recommendations for reviving and expanding domestic nuclear fuel production. The Company also noted that President Trump acknowledged that the “United States uranium industry faces significant challenges in producing uranium domestically and that this is an issue of national security.” The proposed fiscal 2021 budget “addresses immediate challenges to the production of domestic uranium and reflects the Administration’s NFWG priorities. The NFWG will continue to evaluate issues related to uranium supply chain and fuel cycle.”
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in the United States of America (“USA”) (South Dakota, Wyoming, Utah and Colorado), with a primary focus of developing in-situ recovery uranium projects. The Dewey Burdock in-situ recovery uranium project in South Dakota, USA (the “Dewey Burdock Project”), which is the Company’s initial development priority, has received its Nuclear Regulatory Commission License and draft Class III and Class V Underground Injection Control (“UIC”) permits from the Environmental Protection Agency (the “EPA”) and the Company is in the process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA.
For more information please visit www.azargauranium.com.
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For further information, please contact:
Blake Steele, President and CEO
+1 303 790-7528
Disclaimer for Forward-Looking Information
Certain information and statements in this news release may be considered forward-looking information or forward-looking statements for purposes of applicable securities laws (collectively, “forward-looking statements”), which reflect the expectations of management regarding its disclosure and amendments thereto. Forward-looking statements consist of information or statements that are not purely historical, including any information or statements regarding beliefs, plans, expectations or intentions regarding the future. Such information or statements may include, but are not limited to, statements with respect to President Trump’s proposed fiscal 2021 budget requesting US$1.36 billion for the office of nuclear energy, which includes US$150 million (US$1.5 billion for 2021-2030) to establish a strategic United States uranium reserve, the Company’s Dewey Burdock Project Preliminary Economic Assessment (“PEA”), the future financial or operating performance of the Company and its mineral projects, including the Dewey Burdock Project, the timing and amount of estimated future production and capital, operating and exploration expenditures, the Company anticipating being well positioned to realize the benefits of the administration’s support of the U.S. nuclear industry and Azarga Uranium’s continued efforts to obtain all major regulatory permit approvals necessary for the construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Azarga Uranium will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including without limitation: the risk that President Trump’s final approved budget for fiscal 2021 does not include the proposed or any allocations for the office of nuclear energy and the establishment of a strategic United States uranium reserve, the risk that the Dewey Burdock Project is not constructed and the estimated economics of the PEA are not realized, the risk that the estimated economics contained in the PEA do not reflect actual project economics, the risk that the Company does not realize the benefits of the administration’s support of the U.S. nuclear industry, the risk that Azarga Uranium does not obtain all major regulatory permit approvals necessary for construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA, the risk that such statements may prove to be inaccurate and other factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, Azarga Uranium assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the “Risks and Uncertainties” section in the most recent AIF filed with Canadian security regulators.
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